In addition to any intermediate sanctions, the Director may deny a license or take disciplinary action against a licensee if: An applicant fails to meet the regulations governing the services for which it is applying for a license; A licensee fails to comply with the regulations governing its services; or A licensee fails to cooperate with the Department during an investigation or licensing survey. If the Director proposes to deny approval to an applicant or take disciplinary action against a licensee, the Director shall give written notice to the governing body, the executive director, the regional director, the Health Care Financing Administration, and, as appropriate, other interested parties. In the written notice under §B of this regulation, the Director shall include: The statutory and regulatory authority upon which the proposed action is based; The facts supporting the alleged violations of law; and The applicant's or licensee's right to a hearing under Regulation .07 of this chapter before final action.